| 1 We have audited the accompanying financial statements of RAJASTHAN
PETRO SYNTHETICS LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant accounting
policies and other explanatory information.
Management's responsibility for the Financial Statements
2 The Company's Board of Directors is responsible for the matters
stated in section 134 (5) of the Companies Act, 2013 ("the Act") with
respect to the preparation and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provision of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error
Auditors' Responsibility
3 Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4 An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments; the auditor considers internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design the audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control. An audit also includes
evaluating the appropriateness of accounting policies used and
reasonableness of the accounting estimates made by the management, as
well as evaluating the overall presentation of the financial
statements.
5 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
6 In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
(ii) in the case of the Statement of Profit and Loss, of the Loss of
the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
7 As required by the Companies (Auditor's Report) Order, 2015
('Order'), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we enclose in the Annexure,
a statement on the matters specified in paragraphs 3 and 4 of the said
Order, to the extent applicable.
8 As required by Section143 (3) of the Act, we report that:
a. we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. in our opinion proper books of accounts as required by the law have
been kept by the Company, so far as it appears from our examination of
those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in section 133 of the Companies Act,
2013;
e. on the basis of written representations received from the directors
as on 31 March 2015, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31 March 2015
from being appointed as director in terms of section 164(2) of the
Companies Act, 2013 and
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule11 of the Companies (Audit and
Auditors)Rules,2014,in our opinion and to the best of our information
and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigation on its
financial position in its financial statements refer Note 19 to the
financial statements.
ii. The Company did not have any foreseeable losses on long term
contracts and had no derivative contracts outstanding as at 31st March,
2015; and
iii. The Company did not have any dues on account of Investor
Education and Protection Fund.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 7 of our report of even date to the members
of Rajasthan Petro Synthetics Limited on the financial statements for
the year ended 31st March, 2015)
i) (a) The Company has now Office equipments as fixed assets at the
close of year, the fixed Asset Register of which is being prepared.
(b) The Company has physically verified the Office equipments during
the year which in our opinion is reasonable having regard to size of
the company and the nature of the assets.
ii) The Company does not have any Inventory therefore this clause is
not applicable.
iii) According to the information and explanations given to us, the
Company has, during the year, not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 189 of the companies Act, 2013. Accordingly,
paragraph 3(iii) of the Order is not applicable.
iv) In our opinion and according to the information and explanations
given to us, there are internal control systems commensurate with the
size of the Company and the nature of its business with regard to
purchase of fixed assets and with regard to sale of service.
v) The Company has not accepted public deposits during the year.
vi) The Central Government has not prescribed maintenance of cost
accounts for the type of activities of the Company pursuant to the
rules made by the Central Government of India for the maintenance of
cost records under clause (d) of Sub Section (1) of Section 148 of the
Companies Act, 2013.
vii) (a) According to the records examined by us , during the year, no
deductions were made towards Provident Fund and Employee's State
Insurance. The Company was regular in depositing with appropriate
authorities Income Tax, and other statutory dues deducted by it during
the year.
However, Undisputed Statutory dues amounting to Rs. 21.39 Lacs in
respect of ESI, Rs. 8.59 Lacs in respect of Sales Tax, Rs. 0.10 Lacs in
respect of excise duty, Rs. 4.87 Lacs in respect of Textile Committee
cess and Rs. 0.13 Lacs in respect of TDS were outstanding as at 31st
March, 2015 for the period of more than 6 month from the date they
became payable.
(b) According to the records of the Company, the dues of income tax,
service tax, duty of excise, cess and value added tax, which have not
been deposited on account of dispute and the forum where the dispute
are pending, are as under:
S.
No. Status Nature of Taxes Amount
involved Forum where
dispute
is pending
(Rs. In
Lacs)
1. Central Excise Act, 1944 Excise Duty 169.23 Supreme
Court
2. Central Excise Act, 1944 Excise Duty 4.67 C.E.S.T.A.T.
Delhi
3. Central Excise Act, 1944 Excise Duty 3.23 Dy.
Commissioner
of Excise
(Appeals)
Jaipur
4. Sales Tax Department Sales Tax 82.77
SLSC
5. Central Excise Act, 1944 Excise Duty 2.33 Central
Excise &
Gold
Appellate
Tribunal
6. Central Excise Act, 1944 Service Tax 1.11 Asst.
Commissioner
of Central
Excise &
Customs.
(c) The Company did not have any dues on account of Investor Education
and Protection Fund.
viii) There are accumulated losses of Rs.3092.43 lacs as on 31st March
2015 which is more than 50% of its net worth. The company has incurred
cash losses in the current year but not in the immediately preceding
year of the Company.
ix) There are no loans from any Financial Institute or banks. Hence,
this clause of the Order is not applicable.
x) According to the information and explanations given to us, Company
has not given any guarantee during the year for loans taken by others
from banks or financial institution.
xi) In our opinion and according to the information and explanations
given to us, the Company has not raised any term loans during the year.
xii) Based upon the audit procedures performed and to the best of our
knowledge and according to the information and explanations given to us
by the management, we report that no fraud on or by the Company has
been noticed or reported during the course of our audit.
PLACE: NEW DELHI FOR M B R & COMPANY
DATE : 27TH May 2015 CHARTERED ACCOUNTANTS
FRN 021360N
(MUKESH SHARMA)
PARTNER
M. NO. 0511275 |